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On Defining Moments: Video Essay for March 29, 2012


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On Defining Moments: Essay for March 29, 2012

In our nation’s history, there have been numerous defining moments. They are times characterized by incredible amounts of courage and foresight, principle and action. The root of all defining moments for these United States of America took place on July 4, 1776, in Congress assembled, when the founders signed a declaration with the most empowering words the world had ever, and still has ever, known.
“We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable rights, that among these are life, liberty and the pursuit of happiness. That to secure these rights, governments are instituted among men, deriving their just powers from the consent of the governed.”

Thirteen years later, many of these same founders developed a constitution that precisely delineated how this government was to derive those powers from the governed. They created three distinct branches of government to provide the checks and balances necessary to dampen any intemperate actions of the executive and legislative branches. They did so by applying the scrutiny of the judiciary through a laborious process that ultimately rests with the Supreme Court of the United States.

And so our country now finds itself at a defining moment in its history. We have concluded the oral argument phase regarding the Constitutionality of several provisions of the Patient Protection and Affordable Care Act. What is at stake here reaches far beyond a debate about health care or medical treatment. It is not a disagreement between the rich and poor in America. It is not about where our morality lies.
What is at stake here is a single word: Liberty. Can our government compel its citizens to do something against their will under penalty of tax? The Declaration of Independence lists no fewer than 27 grievances against the British Crown, including this one, “For imposing taxes on us without our consent.”

It is thought that the Supreme Court of the United States will announce their decision shortly before their summer break in July, almost 236 years to the day the Declaration of Independence was signed that first codified the concept of consent of the governed. It was the first time in history that the rights of the governed limited the acts of government.

Liberty is indeed at stake in this debate. Also at stake is the integrity of the Supreme Court. To the untrained ear, the passion and persuasion of the legal and Constitutional arguments among the protagonists is nothing short of breathtaking. It is a showcase of our Republic. I am certain the whole world is watching but we citizens of America, we descendents of these brave founders, must admire the process that has taken this bitter and hotly contested legislation to a point of resolution.

So what will the Supreme Court decide? I do not know with certainty. I have no crystal ball. But I do have a feeling that despite ideological and political proclivities, despite hull crushing pressure from constituencies across this country, despite the unrelenting media spotlight that will descend upon this Supreme Court, justice will prevail.

I believe the decision will surprise any who think that Presidential appointments anneal a Justice to the party of the appointing President. The line of questioning has been balanced and encouraging to me; so much so, in fact, that I do not foresee a 5-4 decision of an ideologically split court. While I have my own opinion of the outcome I am no Constitutional scholar. We leave that to these professionals, these 9 Justices of the Supreme Court of the United States, to determine. I believe they have a sense of the gravity of the moment as well. I believe they see the obvious conflict between the power of the government and the necessary consent of the governed.

Said Thomas Paine in December of 1776:

These are the times that try men’s souls. The summer soldier and the sunshine patriot will, in this crisis, shrink from the service of their country; but he that stands by it now, deserves the love and thanks of man and woman. Tyranny, like hell, is not easily conquered; yet we have this consolation with us, that the harder the conflict, the more glorious the triumph. What we obtain too cheap, we esteem too lightly: it is dearness only that gives every thing its value.

In three months we shall learn the outcome of two years of litigation, frustration and intimidation. We shall learn whether we will emerge from this chapter in our history with a renewed sense of liberty or a heightened sense of despair.

The ball is in their court: the Supreme Court. And I have faith in them.

Press on.

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On Vegas, Revelations and Parades: Video Essay for March 10, 2012

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On Koran Burning and American Leadership: Video Essay for February 25, 2012

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On China and American Moral Leadership: Essay for February 4, 2012

Traveling as do, I have literally circled the globe a couple of times each year over the last several decades. In fact, travel has taken me overseas for three of the last four weeks to Asia and Europe to conduct business; doing my part in growing the business of a large multi-national corporation. It is an experience that has produced a world view that is seasoned and uniquely mine.

The United States is an island nation. Our east coast abuts the mighty Atlantic Ocean. Heading westward, as our pioneer ancestors did, brings us to the vast Pacific. America has been blessed with abundant natural resources that, for most of our existence, made us self-sufficient and blissfully isolated in a world that long ago relied upon delicate interdependencies and alliances. We avoided colonial aspirations and fiercely resisted entering global conflicts in Europe and Asia until dragged in by grievous circumstance.

And when the dust settled after the Second World War we were still standing. The industrial might of the nations of Europe was destroyed and Japan laid waste by nuclear attack. The Arsenal of Democracy became the Factory of the World. The Marshall Plan rebuilt Europe and MacArthur oversaw the rise of a democratic Japan, each dominated by American industrial might.

Ironically, we created the monster that ate the American factory. Our efforts to restore stability and prosperity to a war torn world led to great infrastructure improvements. Germany and Japan built new factories and highways that were more efficient than the aging behemoths in the United States that just a few short years earlier produced the war material that defeated the Fascists and the Nazis. Taiwan and Korea built ships that Henry Kaiser, the father of the Liberty ship, would envy. Year by year, the newly industrialized world nibbled at the heels of American industrial dominance.

Slowly but steadily, American businesses grew weaker. Large industrial employers began to ship production elsewhere for better efficiencies and labor costs; first to the Sun Belt, then abroad. In 1960, 9 of the top 10 employers in the United States were industrial companies. Today, 7 of 10 are service providers. Here’s the rub: the job multiplier for industrial companies, such as automotive and steel, are much higher than for service industries such as retail or healthcare. For every 1000 jobs created in the steel industry, an additional 11,000 jobs are created elsewhere as a direct result. In retail, the same 1000 jobs create only an additional 240.

The bottom line effect is that losing 1000 steel workers has an impact that cannot be offset by creating 1000 jobs at Wal-Mart. Not by a long shot. America needs to retain, create and repatriate industrial jobs in order to preserve the post-war economy that ushered in the era of Pax Americana. And it needs to do so fast.

The erosion of domestic American business accelerated once Most Favored Nation status was conferred upon the People’s Republic of China in 1999. Since then, foreign direct investment has grown geometrically as a vast low cost labor market became available. Our balance of payments deficit has ballooned from $89 billion in 1999 to a level three times higher today.

And with all the wealth sprung from wildly successful businesses built in newly built cities in China, more than one third of the 1.3 billion Chinese live on two dollars a day. Human Rights and Workers Rights have not kept pace with the pace of change. Environmental respect long ago yielded to unbridled development. The cost of environmental stewardship is not passed along to producers.

These factors greatly enhance the competitiveness of Chinese businesses. They are not likely to change unless the world cries out for change. And we are held hostage by the addiction we have to low, lower, lowest cost manufacturing and the consumerism that drives consumption in America. We have failed to hold China accountable for their lack of responsible leadership in the face of the dynamic change their society is undergoing.

We can talk about leveling the playing field against unfair tariffs, product dumping and currency manipulation but until we begin to exert pressure on the Communist regime to act in a responsible way towards their society and our environment, the United States is a willing co-conspirator in our own industrial demise and the erosion of our moral leadership.

President Hu will shortly be visiting the United States. Who in our government will exhibit the courage to lead against this nascent economic giant? And in so leading, do we not gain a chance to reclaim a stronger economy in the process. The whole world should be watching.

Press on.

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